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ISA, ISA, ISA

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Oi, oi, oi!

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That looks as though you may have an edge case here where we would have to manually sell down that fraction as it is so small itā€™s likely a small fraction of a penny in value!

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Previously it would flag that the trade was too small (below 10p limit). Not sure if thatā€™s still the case since the update.

Had a few of these myself I just bought an extra 10ps worth then sold the remaining fraction.

Thanks again for your response.

Appreciate you looking into it for me and as I said, Iā€™m not currently looking to sell anyway, just something I came across while browsing this morning and couldnā€™t find an answer to anywhere.

Fingers crossed that the legislation comes in soon so I can buy more (fractional) anyway.

Thanks again, have a nice day.

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Hi,

So yeah Ā£170 then a fee of Ā£1 and the 15% has already been deducted in the background or has that yet to come off, from youā€™re message it sounds like itā€™s already done in the background. It is a usa stock I knew about uk stocks etc just I donā€™t deal much with doller stocks and the selling process.

Yes the exange rate I guess everyone waits until itā€™s in there favour on a downturn to sell unless itā€™s some emergency etc.

Lucky my sales arenā€™t big enough to care for gains etc yet but I do have an isa and standard plan so for now I donā€™t have to care about this.

Thanks though for replying

Thanks for the repliy I have a isa and standard account. I knew about the capital gains part for the UK side I guess the USA works in much the same way but who knows if you csn vlam any fees back on a tax form? But again I have an isa so I donā€™t have to worry for now until the gov screws it up.

Thanks again

I just sold my only fractional share today just to equal it out.

15% tax is only on dividends.

fx fee is on purchase and sale of stock (rate depending on FT tier)

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Ahh sweet the companies I have donā€™t do divs anyways so thatā€™s decent. Thanks for the repliy

I have a question. Perhaps a silly question, and if it is, I apologize for that, but I would like to know how you plan to invest when your invested amount exceeds the Ā£85,000 guaranteed by the FSCS scheme. I have researched, and there is advice to seek help from a financial advisor (no surprise), but I would like to read what others have in mind.

No such thing as a silly question so donā€™t apologise for that, but my understanding is that the Ā£85k guarantee is only for cash. So whether your investment is under or over that makes no difference.

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@1anrs is spot on. The Ā£85,000 protection is for cash only. All your stocks are yours as a beneficial owner in a separate ā€˜nomineeā€™ company. Theyā€™re held completely separately from the rest of the business - as are client funds.

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Thank you both for the prompt reply.

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So basically, you keep your stocks (which you would likely transfer to another broker) and recover the cash value of up to 85k through the FSCS scheme?

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If youā€™re sitting on cash

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Yesā€¦Iā€™m referring to the situation where you have both stocks and funds in your account.

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With a further assumption that Freetrade has managed to commit fraud with a regulator spotting it. Your funds are also kept in a separate account that Freetrade canā€™t access for its own uses.

The Ā£85k protection is for cash in your account that have been misappropriated by Freetrade.

Banks are different as they actively use clientsā€™ funds to generate income and pay you interest.

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This isnā€™t quite true.

FSCS may cover other mismanagement or other fees as well as cash.

For example, they may cover mis selling of advice (freetrade doesnā€™t offer an advice service so this doesnā€™t apply);

they may cover missing assets for example if there was some issue with how assets were held or were lost somehow (unlikely);

They may cover administrative fees accrued during the administration of a failed broker.

FSCS have in the past covered some of these kind of scenarios. But itā€™s also important to remember itā€™s a compensation scheme, not a guarantee.

They obviously donā€™t cover your own bad investment choices.

@RGol see above.

The ring fencing of assets as others have mentioned is the main protection of your investments. I donā€™t really care about the 85k when it comes to my investments. Itā€™s good to have for the remote risk a broker goes under and you may be able to claim back any cash or fees from administration, but itā€™s more important to know where and who is the custodian of your assets.

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Thank you for the clarification.